Introduction to Entrepreneurship
Entrepreneurship is the art of starting a business, basically
a startup company offering creative product, process or service. We can say
that it is an activity full of creativity. An entrepreneur perceives everything
as a chance and displays bias in taking decision to exploit the chance.
An entrepreneur is a creator or a designer who designs new
ideas and business processes according to the market requirements and his/her
own passion. To be a successful entrepreneur, it is very important to have
managerial skill and strong team building abilities. Leadership attributes are
a sign of successful entrepreneurs. Some political economists regard
leadership, management ability, and team building skills to be the essential
qualities of an entrepreneur.
An entrepreneur is an innovator or a creator who introduces
something new to the firm or economy. It can be a new method of production, a
new product, a new source of material, a new market or any other similar
innovation. Thus, an entrepreneur is an innovator, creator, borrower,
purchaser, etc.
Figure: Entrepreneurship
Motivation
An Important Factor
The performance of an entrepreneur is dependent on his/her ability and
willingness to perform. Here, by ability we mean a function of education,
experience and skill and by willingness we mean to perform depending upon the
level of motivation. Motivation is one of the fundamental factor
required for an entrepreneur to promote his/her ideas.
Why is Motivation Required?
The
term motivation has been derived from the word motive which is nothing but what
prompts any person to act in a particular manner. Motives are the definition of
a persons goals, dreams and needs. They direct human behavior to towards
achieving their goal.
When everything is
properly organized, then what is the need of motivation?
The following points answer this question and gives an idea why motivation is an important factor for an entrepreneur –
·
Tough competition − An entrepreneur needs to face tough competition, in
order to sustain and make a mark in this global market. To cope with this
competition, motivation is required at each stage of the firm.
·
Unfavorable environment −
Nobody knows what the future holds. One has to take care of the current economy
and should be prepared for the worst situations of deteriorating economic
conditions. For this, motivation and optimism is essential.
·
To create public demand −
Market runs by the people and for the people. To run a business profitably, it
is required to create a public demand for your product or service in the market
and attract as many customers as possible. To do this in the right way,
motivation is required.
·
To enhance creativity −
Market always wants something new and different. If every firm offers the same
product without any variation then there is no point of preferring one brand in
particular. To sustain one has to be innovative. Add some new features in the
existing products and services, make them more user friendly in a considerable
budget. This requires motivation too.
·
To increase productivity −
It is very important to take care of the quality of the product as well as the
profit. People will always prefer a product which is cost efficient and of good
quality. So, motivation is required for increase the productivity.
What
Motivates an Entrepreneur?
Many research studies
have been conducted by researchers to understand and answer this question so
that the factors that motivate people to take all the risk and start a new
enterprise can be identified.
The 6Cs
that motivate entrepreneurs to establish their own business are as
follows −
·
Change −
Entrepreneurs frequently want change, not only change, they also want to be the
bearers of change. They are solution givers and want to interrupt the status
quo. They have a vision like "I want to assemble the world's
information" or "I want to put an AC at every desk" and they
take an attempt to make this change. In this attempt, some succeed and some
fail.
·
Challenge − Some
people love challenges and they opt for starting a new business as it is very
challenging to handle big problems. These people find typical job in a big
corporate as boring and not challenging enough.
·
Creativity −
Running ones own business is all about being more creative and having the
independence to make new discoveries. For example, testing a new website
design, launching a new marketing scheme, creating inventive items that solve a
known issue in a different way, creating new advertising campaigns, etc. One
needs to have an infinite room to welcome and introduce creativity in a small
business.
·
Control − Some
people tend to start a business because they don't want to be pushed around and
work for a product/company in which they have no way to shape their destiny.
They want to be their own boss having their own time, own pace, location of
their choice, employees of their choice and have a progressive role in deciding
the direction of the company.
·
Curiosity − Successful
entrepreneurs are always anxious and ask − "what if we do X this way? They
want to have more than one option to do a work and choose the best one from
them. They want to understand the customer's perceptions, point of views,
markets and competitors. They are frequently anxious to see how their
particular theory like "people want to do A with B" works. In this
aspect, they can’t be differentiated from a scientist who is trying to prove
his theorem.
·
Cash − The last
but not the least part is the cash. Money says it all. Many non-entrepreneurs
have a misconception that cash comes first for entrepreneurs but this is never
really true. If this would be the case, then there is no reason for an Ellison
or Gates to keep expanding their business aggressively after they have made
more than billion dollars. However, money is not the primary motivation.
Results
of Motivation
Successful entrepreneurship needs
determination, freedom, discipline, connectivity and an abundance of skills in
planning. People with a complete package of physical strength combined with
perseverance, mental strength, and self-discipline have the passion and urge to
succeed. With proper motivation, we get the following
outcomes −
·
Heavy industrialization −
Tremendous growth can be seen in industrialization. Example: Companies like
TISCO, TELCO have been set up and are flourishing.
·
Self-employment −
A common man gets a chance to make a difference, set a new standard of
industrial growth. Example: Entrepreneurs like Dhirubhai Ambani and Azim Premji
are born.
·
Economic growth −
When there is growth in an individual’s economy, there is a growth in the
companys economy, which in turn results in the growth of that particular area
and country. Example: Emergence of smart cities concept.
·
Creating new jobs −
More entrepreneurship leads to more job openings. More job openings lead to
more employment opportunities.
·
Proper social benefit −
When a countrys economy grows or increases we see that more advanced and proper
social benefits are provided to the general public like construction of roads,
school, hospital, colleges, etc.
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